Firstsource Solutions Ltd logo

Firstsource Solutions Ltd

FSL NSE

Firstsource Solutions Limited is a leading player in the Business Process Management (BPM) industry. Part of the RP-Sanjiv Goenka Group, Firstsource provides bespoke services and solutions to its customers across Banking and Financial Services, Healthcare, Communications, Media and Technology, and other diverse industries. The company has the philosophy of 'Digital First, Digital Now' [1]

AI Verdict: BUY Confidence: 7%

Firstsource Solutions offers compelling growth with TTM sales growth of 20% and profit growth of 28%, supported by 84.6% buy consensus from analysts. The stock's 35% correction from highs provides an attractive entry point for a company with consistent 16% ROE over 10 years.

Key Fundamentals

SmallcapBPO / KPOCommercial Services
Market Cap
₹17,062 Cr
Volatility
Moderate
P/E Ratio
25.55
EBITDA
₹1,518 Cr
Return on Equity
13.91%
Debt to Equity
0.53
Book Value
₹62.16
EPS
₹7.43
52W High
₹403.8
52W Low
₹202

Technical Indicators

Key Insights

Strengths

1
  • Company has been maintaining a healthy dividend payout of 50.4%

Weaknesses

1
  • Company might be capitalizing the interest cost

Growth Rate

Revenue Growth
20.34% ↗
Net Income Growth
11.52% ↘
Cash Flow Change
8.86% ↗
ROE
4.31% ↘
ROCE
-2.12% ↘
EBITDA Margin (Avg.)
4.44% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
BUY
Risk medium

Firstsource Solutions offers compelling growth with TTM sales growth of 20% and profit growth of 28%, supported by 84.6% buy consensus from analysts. The stock's 35% correction from highs provides an attractive entry point for a company with consistent 16% ROE over 10 years.

Bull Case 8
  • Strong TTM revenue growth of 20%, accelerating from 5-year CAGR of 13%, indicating improving business momentum
  • TTM profit growth of 28% significantly outpaces sales growth, demonstrating operating leverage and margin expansion
  • Overwhelming analyst consensus with 84.62% buy ratings (11 out of 13 analysts recommend buy)
  • Consistent ROE of 16% maintained over 3, 5, and 10-year periods, with last year improving to 18%
  • Healthy dividend payout ratio of 50.4% with current yield of 2.29%, providing income while growing
  • 10-year stock CAGR of 18% demonstrates long-term value creation for shareholders
  • 3-year stock CAGR of 24% despite recent correction shows strong medium-term compounding ability
  • Market cap of Rs 16,623 crore places it in mid-cap territory with room for institutional re-rating
Bear Case 8
  • Stock has declined 35% over the past 1 year, indicating significant negative price momentum and possible structural concerns
  • PE ratio of 25.2x is elevated for an IT services company growing profits at a 5-year CAGR of only 10%
  • Company might be capitalizing interest costs, which could overstate reported profits and asset values
  • Price-to-book ratio of 3.86x is demanding and leaves limited margin of safety if growth decelerates
  • 5-year stock CAGR of only 8% despite 10% profit CAGR suggests market has periodically de-rated the stock
  • Compounded profit growth of 10% over 5 years and 11% over 10 years is modest relative to current PE multiple of 25.2x
  • Only 1 analyst rates it a hold and 1 rates it a sell, but the sharp price correction suggests risks not fully captured in consensus
  • Absence of reported debt-to-equity ratio combined with interest capitalization concern raises balance sheet transparency questions

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Positives 1
  • AI yields 95% faster processing Jun 1

    Firstsource and AppliedAI partnership delivers 95% reduction in processing time in healthcare and 10x throughput improvement in education, demonstrating tangible AI-driven operational gains.

Neutral 4
  • Analyst meeting with Carnelian scheduled Jun 24

    Virtual one-on-one meeting with Carnelian Asset Management on June 30, 2026. No unpublished price-sensitive information to be shared.

  • RPSG Ventures holds 37.4cr shares Jun 17

    Promoter RPSG Ventures declared holding 37,39,76,673 shares as of March 31, 2026, with zero encumbrance throughout FY26, signaling stable promoter commitment.

  • ICICI Prudential meeting on Jun 26 Jun 15

    Virtual meeting scheduled with ICICI Prudential Life Insurance on June 26, 2026, to discuss public domain developments only.

  • Investor meetings in early June Jun 2

    Analyst and institutional investor meetings scheduled for June 9 and June 11, 2026, via virtual mode.

TL;DR: Firstsource Solutions shows no material headwinds in the recent news cycle. The standout positive is its AI partnership delivering measurable efficiency gains (95% time reduction, 10x throughput), which signals strong execution on digital transformation. Active institutional engagement through multiple analyst meetings suggests sustained investor interest. The trend is mildly improving, with AI capabilities potentially driving future revenue and margin expansion.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
1,557
1,529
1,540
1,597
1,670
1,791
1,925
2,102
2,161
2,218
2,312
2,443
2,583
Expenses
1,313
1,289
1,311
1,359
1,420
1,521
1,638
1,785
1,829
1,871
1,936
2,040
2,153
Operating Profit
244
240
229
237
250
270
287
318
333
347
376
403
430
OPM %
16%
16%
15%
15%
15%
15%
15%
15%
15%
16%
16%
16%
17%
Other Income
13
2
17
15
3
2
-3
7
2
7
1
-97
-2
Interest
21
25
26
25
27
32
34
39
43
43
43
43
52
Depreciation
64
61
65
66
67
73
79
84
91
97
110
111
116
PBT
172
155
154
161
159
167
171
201
202
213
224
152
261
Tax %
18%
19%
18%
20%
16%
19%
19%
20%
20%
21%
20%
21%
21%
Net Profit
141
126
127
129
134
135
138
160
161
169
180
120
205
EPS in Rs
2.02
1.79
1.8
1.83
1.9
1.92
1.96
2.27
2.27
2.39
2.54
1.7
2.9
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
3,035
3,217
3,556
3,535
3,826
4,099
5,078
5,921
6,022
6,336
7,980
9,556
Expenses
2,645
2,819
3,109
3,064
3,274
3,445
4,239
4,939
5,165
5,329
6,743
8,000
Operating Profit
390
398
447
471
552
654
839
982
858
1,008
1,238
1,556
OPM %
13%
12%
13%
13%
14%
16%
17%
17%
14%
16%
16%
16%
Other Income
7
9
3
5
4
9
-114
1
131
37
14
-91
Interest
80
61
54
53
46
83
87
86
110
155
184
181
Depreciation
72
61
59
66
74
185
206
249
263
260
327
434
PBT
244
286
337
358
436
394
432
647
615
630
741
850
Tax %
4%
9%
17%
9%
13%
14%
16%
17%
16%
18%
20%
21%
Net Profit
234
261
279
327
378
340
362
537
514
515
594
674
EPS in Rs
3.52
3.87
4.11
4.76
5.47
4.9
5.2
7.69
7.33
7.31
8.41
9.54
Div. Payout %
0%
0%
0%
32%
37%
51%
58%
45%
47%
47%
47%
57%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
666
673
681
687
691
694
696
697
697
697
697
697
Reserves
1,422
1,104
1,347
1,665
2,030
2,072
2,103
2,336
2,670
3,003
3,401
3,688
Borrowings
1,031
891
965
667
557
1,356
1,194
1,784
1,393
1,526
2,569
2,922
Other Liabilities
306
286
316
352
352
393
789
796
785
702
1,091
2,014
Total Liabilities
3,427
2,954
3,309
3,371
3,630
4,514
4,783
5,613
5,545
5,929
7,758
9,320
Fixed Assets
2,444
2,022
2,068
2,080
2,223
2,871
2,998
3,744
3,716
3,853
4,994
5,567
CWIP
8
2
4
2
2
0
0
3
3
17
49
30
Investments
73
85
163
34
134
12
94
130
71
42
73
116
Other Assets
901
845
1,074
1,255
1,271
1,630
1,691
1,736
1,754
2,017
2,642
3,607
Total Assets
3,427
2,954
3,309
3,371
3,630
4,514
4,783
5,613
5,545
5,929
7,758
9,320
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
246
297
200
315
400
410
976
704
795
644
701
1,214
Investing
-104
-101
-233
96
-203
10
-344
-594
17
-57
-744
-452
Financing
-246
-207
4
-327
-273
-277
-689
-158
-743
-563
23
-667
Net Cash Flow
-105
-11
-30
84
-76
143
-58
-49
69
23
-21
95
Free Cash Flow
201
212
123
258
292
297
806
631
744
559
477
1,082
CFO/OP
76
89
57
83
84
71
125
81
100
71
66
90
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
35
34
31
39
37
50
61
59
63
67
77
79
Cash Conversion Cycle
35
34
31
39
37
50
61
59
63
67
77
79
Working Capital Days
-33
-27
-33
-35
-20
-37
-28
-20
-22
-19
-20
-38
ROCE %
10%
12%
14%
13%
15%
13%
16%
17%
15%
16%
15%
16%

Shareholding Pattern

As of Mar 2026
Promoters 53.66%
DIIs 25.49%
Public 9.42%
FIIs 8.86%
Others 2.58%
Total 100.01%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
53.72%
53.68%
53.66%
53.66%
53.66%
53.66%
53.66%
53.66%
53.66%
53.66%
53.66%
53.66%
53.66%
53.66%
53.66%
53.66%
53.66%
53.66%
53.66%
53.66%
53.66%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
9.89%
9.59%
9.36%
11.63%
11.01%
10.08%
9.58%
9.25%
9.19%
8.86%
DIIs
14.23%
14.92%
13.67%
14.67%
14.64%
14.56%
13.26%
14.17%
15.06%
15.16%
16.22%
18.16%
19.27%
19.52%
18.60%
20.88%
22.90%
23.94%
24.62%
25.20%
25.49%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
15.47%
13.49%
15.88%
16.29%
18.12%
18.66%
19.49%
18.57%
17.38%
16.38%
15.18%
14.26%
13.50%
13.40%
12.51%
11.39%
10.44%
10.14%
9.75%
9.45%
9.42%
Others
16.57%
17.91%
16.80%
15.38%
13.58%
13.13%
13.60%
13.60%
13.91%
14.81%
14.94%
4.04%
3.99%
4.07%
3.60%
3.07%
2.92%
2.68%
2.71%
2.50%
2.58%
No. of Shareholders
1,95,877
2,07,560
2,78,435
2,94,100
3,20,499
3,28,001
3,41,663
3,28,787
3,09,891
2,95,283
2,87,185
2,75,233
2,66,874
2,58,789
2,82,859
2,80,639
2,66,868
2,54,253
2,40,982
2,30,472
2,29,935

Documents

1
Concall - Aug 2017 Aug 2017
2
Concall - Sep 2017 Sep 2017
3
Concall - Nov 2017 Nov 2017
4
Concall - Feb 2018 Feb 2018
5
Concall - Feb 2018 Feb 2018

Frequently Asked Questions about Firstsource Solutions Ltd

What does Firstsource Solutions Ltd do?
Firstsource Solutions Limited is a leading player in the Business Process Management (BPM) industry. Part of the RP-Sanjiv Goenka Group, Firstsource provides bespoke services and solutions to its customers across Banking and Financial Services, Healthcare, Communications, Media and Technology, an...
Where is Firstsource Solutions Ltd (FSL) listed?
Firstsource Solutions Ltd is listed on the Indian stock exchanges. It is listed on NSE: FSL and BSE: 532809. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Firstsource Solutions Ltd belong to?
Firstsource Solutions Ltd operates in the Services sector within the Commercial Services & Supplies industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Firstsource Solutions Ltd?
Firstsource Solutions Ltd has a market capitalisation of approximately ₹17062.34 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Firstsource Solutions Ltd?
The Price-to-Earnings (PE) ratio of Firstsource Solutions Ltd is 25.55. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Firstsource Solutions Ltd?
Over the past 52 weeks, Firstsource Solutions Ltd has traded between a low of ₹202 and a high of ₹403.8. This range helps investors understand the stock's price volatility and recent trading levels.
Does Firstsource Solutions Ltd pay dividends?
Yes, Firstsource Solutions Ltd has a dividend yield of 2.25%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Firstsource Solutions Ltd?
Firstsource Solutions Ltd has a Return on Equity (ROE) of 13.91%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Firstsource Solutions Ltd on Tapetide?
On Tapetide, you can view Firstsource Solutions Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Firstsource Solutions Limited is a leading player in the Business Process Management (BPM) industry. Part of the RP-Sanjiv Goenka Group, Firstsource provides bespoke services and solutions to its customers across Banking and Financial Services, Healthcare, Communications, Media and Technology, and other diverse industries. The company has the philosophy of 'Digital First, Digital Now' [1]

Website firstsource.com
CEO Mr. Ritesh Mohan Idnani
Employees 35,997
Listed 2007-02-22
Face Value ₹ 10
Issued Size 69,69,90,826

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